Market Roundup 160212

FBM30 1550.49, -10.81 points (-0.69%), Volume 2,185mil, Value 1,972mil

1) Market fell for the 2nd consecutive days as investors turn cautious on the delay in the second bailout for Greece while Moody issued warning to review for possible downgrade to ratings of 17 global banks. Index was weighted down by Tenaga, SIME and banks before finding some support at 1550pts levels, trading sideways after early morning weakness. Rotational of penny names saw MUI related names firmer led by MUIPROP+50%, MUIIND+4%, PMIND+20%. Market breadth was negative with decliners trashing gainers 239:668. Futures closed 1547 (3.5 points discount).

2) Heavyweights: TENAGA-2.12% RM6.00, PBBANK-0.87% RM13.64, DIGI-1.44% RM4.10, SIME-0.73% RM9.54, KLK-2.3% RM24.80, CIMB-0.69% RM6.88, PETGAS-1.68% RM16.36, PCHEM-0.87% RM6.88

3) DBT: GPACKET 13.9mil @ RM0.61 (2% PUC, 4.7% discount), COMPUGT 3.5mil @ RM0.135 (17% premium)

4) Situationals:

CANONE-5% RM1.70: share price fell after CANONE's acquisition of a block of Kian Joo shares was contested with notices from Datuk See Teow Chuan and 13 others who are appealing to the Federal Court to review its ealier ruling.

5) HIBISCUS

Its proposed subscription for 76,923,077 new ordinary shares of 0.05 USD cents each in Lime Petroleum Plc, a company incorporated in Isle of Man, and proposed acquisition of 22,153,846 existing Lime Shares, representing in aggregate 35.0% of the enlarged issued and paid-up share capital of Lime for a total cash consideration of USD55 million has been approved by SC subject to several conditions including

- quarterly report details of its exploration, development and production activities and a summary of expenditure during the period of review until such time that the company have determined and announced proven hydrocarbon reserves. Figures and estimates of any discovery of hydrocarbons must be announced and verified by an independent geologist or expert.

6) Market - Current expected pullback in the market continues to be an opportunity for investors to bargain hunt as we believe the current uptrend remains intact. Trading Buy levels KEuro, MAS, KNM, MMC, TimeCom.

Market Roundup 030212

FBM30 1538.77 +1.68 points (+0.11%), Vol 2,844mil, Value 2,315mil

1) Ahead of the long weekend, index fell as much as 11 points in the first trading hour before gradually paring down losses to close above the overnight level, thanks to mild bargain hunting in select heavyweights (SIME+1.9%, AXIATA+0.4%, CIMB+1%). Despite investors being cautious ahead of January US employment data later in the day, lower liners dominated the market volume with hefty gains: NICORP+100%, SAAG+7%, KBUNAI+8.8%, ASIAPAC+15%. Market breadth was healthy with gainers outpacing losers 461:399. Futures closed 1538 (parity)

2) Heavyweights: SIME+1.9% RM9.46, CIMB+1% RM7.00, PETGAS+2% RM16.20, PCHEM+0.9% RM6.79, AXIATA+0.4% RM4.75, IOICORP+0.4% RM5.44, GENTING-1.4% RM11.00, KLK-2.7% RM24.90, GENM-2.2% RM4.01, AIRASIA-1.9% RM3.63.

3) DBT: SUNREIT 26.5mil @ RM1.26

4) Situationals:

Hibiscs-3.9% RM1.49: Shares dipped after company clarified that it had posted net losses of RM1.27mil for the quarter ended Sept 30, 2011 instead of net profit. In its amended financial statements on Thursday, Hibiscus said the net losses were due to the higher expenditure. It also said it posted net losses of RM13,000 in the quarter ended Sept 30,2010  instead of a net profit of RM13,000.

5) Waseong: Announced that it's wholly owned subsidiary WS Agro Industries Pte Ltd has entered into a Subscription & Shareholders Agreement with Silvermark Resources Inc & Giant Dragon Group Ltd, for the subscription of 51% of Atama Resources Inc (ARI) for an aggregate subscription of up to USD25m. Atama Plantation SARL (APS), a wholly owned subsidiary of ARI, is principally engaged in plantation & industrial processing, agro industry & marketing of finished and semi-finished products. On 17 Dec 2010, APS and the Govt of the Republic of Congo had entered into a Oil Palm Plantation Concession Agreement to undertake & operate the business of agricultural development & cultivation of oil palm on 470,000ha of federal land. The concession granted is for a period of 30 years extendable for as many terms as required by the concessionaires. Planning & feasibility studies for the project have been done, and 180,000 ha has been identified as highly suitable for oil palm cultivation - subscription is in line with Waseong group's expansion plan into the oil palm plantation as a source of sustainable & recurring income. It is also an upstream integration, because through it's subsidiaries, it has already been in the business of supplying specialized equipments like boilers, steam turbine and oil room centrifuges to palm oil mill operators locally & abroad, including Africa. Project is expected to contribute positively to Waseong's future earnings.

6) Mkt: Barring a bad US jobs data and a hiccup in the Greeks' debt swap agreement, the KLCI index will continue to grind higher with construction stks, mid caps & lower liners the ourperformers.